Investors in the United States poured more than 6.4 billion USD into spot Bitcoin exchange-traded funds (ETFs) in November, as Bitcoin's market price rose by 45%, surpassing 99,000 USD for the first time in history.
In a price surge lasting throughout November, Bitcoin (BTC) jumped from around 68,000 USD to 99,000 USD. Amid optimistic market sentiment, spot Bitcoin ETFs raised a total of 6.87 billion USD, with cash outflows of 411 million USD in that month.
According to data from Farside Investors, BlackRock's iShares Bitcoin Trust ETF (IBIT) attracted 5.6 billion USD in investments in November, accounting for nearly 87% of the total monthly investment.
Total cash inflow and outflow of the Bitcoin Spot ETF market in the US. Source: Farside Investors
Investors show confidence in Bitcoin prices
Other notable units attracting significant investment include Fidelity's Bitcoin Wise Origin fund (FBTC) with 962 million USD, Grayscale's Bitcoin Mini Trust ETF (BTC) reaching 211.5 million USD, and VanEck's Bitcoin ETF (HODL) with 71.2 million USD.
Continuous cash flow from institutions and individual investors in the context of high BTC market prices is said to support the current price rally. Traders and analysts have predicted a 'crazy long-term opportunity' for Bitcoin in the coming months, suggesting that BTC has entered a new price discovery phase.
On the other hand, three entities contributed to the net cash outflow of 411 million USD per month, including the Grayscale Bitcoin Trust ETF (GBTC), Bitwise Bitcoin ETF (BITB), and Valkyrie Bitcoin Fund (BRRR), with cash outflows of 364 million USD, 40.4 million USD, and 6.8 million USD respectively.
The Cryptocurrency Fear & Greed Index, an analysis of investor sentiment maintained by Alternative.me, also forecasted strong optimism in November.
One-year chart of the Fear & Greed Index. Source: Alternative.me
Optimistic investment sentiment throughout November
On November 22, the Cryptocurrency Fear & Greed Index reached its highest level of the year with a score of 92, signaling strong optimism from investors.
As December begins, the index score slightly decreases but continues to reflect extremely optimistic sentiment. Data from TinTucBitcoin and TradingView shows that BTC is stabilizing at a price of 96,000 USD in December.
Bitcoin market price in November 2024. Source: TradingView
Read TinTucBitcoin's guide to learn more about analyzing the Cryptocurrency Fear & Greed Index to build effective investment strategies.
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